Cookie Consent

By clicking “Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.

Downing Strategic Micro-Cap Investment Trust plc

Hunting value, enabling transformation.

Downing Strategic Micro-Cap Investment Trust plc (DSM) is a UK investment company listed on the London Stock Exchange, focused on unlocking value from a concentrated portfolio of between 12 – 18 companies under £150m market capitalisation at initial investment.

DSM finds and invests in small companies that are overlooked and undervalued by the market. DSM works with management to help transform those companies, and aims to unlock and realise considerable intrinsic value.

Update on planned return of capital to shareholders

20 March 2024

Further to the circular to shareholders published on 8 March 2024 and following strong results announced by several investee companies, the Board of DSM is pleased to announce that the level of cash within the Company's portfolio against the Company's NAV as at 6 March 2024 has increased to over 40%. The Board, therefore, anticipates that it will be able to undertake an issue and redemption of B shares on or around 4 April 2024 so as to return capital of approximately 26.0 pence per ordinary share to existing shareholders. This is significantly improved on the previous anticipated return of approximately £10 million in aggregate (representing approximately 21.5 pence per ordinary share).

The issue and redemption of B shares is subject to the passing of the resolutions to be moved at the General Meeting being held on 3 April 2024, which together seek to approve the implementation of B shares schemes.

The remainder of the portfolio comprises investments in companies where there is a clear path to greater value than that currently reflected in the Company's NAV. Some of DSM's investee companies are currently in strategic review or bid situations that are likely to realise value over coming months.

It is the Board and Investment Manager's expectation that at least 50% of the Company's NAV (calculated as at 6 March 2024), will be distributed to shareholders by 30 June 2024. The Investment Manager intends to update shareholders on further portfolio developments shortly after the return of capital to be made in April.

Chairman, Hugh Aldous, commented: "As a Board we are committed to doing the right thing for our shareholders and are pleased to see that, subject to receiving shareholder approval at our general meeting on April 3, our plans to wind down our portfolio and return capital to shareholders are well on track. As of today, we can confirm that thanks to recent developments, we can increase the amount of our initial distribution in April by approximately 20% and are more confident than ever of being able to have returned more than 50% of the current capital by the end of June.  Progress to date bodes well for prospects of completing the return of 100% of capital to shareholders and capturing further premiums to NAV."

To allow the return of capital on 4 April 2024, shareholders need to vote FOR all resolutions at the General Meeting of the Company, to be held on 3 April 2024:

Related announcements:

Update on circular for General Meeting
Publication of a circular for a General Meeting

Fees

Annual management charge: 1% on market cap

Ongoing charges:

Ongoing charges – The ongoing charges for the year ending 28 February 2023 were 1.94%. These charges represent DSM’s management fee and all other operating expenses excluding any finance costs, expressed as a percentage of the average daily net assets during the year.

Risks

Past performance should not be used as a guide to future performance. The value of shares can go down as well as up - there is no guarantee that you will get back the amount you originally invested.

Please note that this is only a brief overview of the risks associated with investing in the Downing Strategic Micro-Cap Investment Trust. The full details of all the risks can be found here.

How to invest

DSM’s shares are traded on the London Stock Exchange and can be purchased through a stockbroker or other financial intermediary.

You can invest in DSM via a number of fund platforms, please see the options below.

Please note that by clicking on a link, you will be taken to a website operated by a third party. Downing does not sponsor, maintain or have any control over the content of any other website. If you access another site, you do so at your own risk and we accept no liability for any damage or loss.

Management team

DSM is managed by Judith MacKenzie and Nick Hawthorn of Downing Fund Managers, a boutique investment house founded in 2010. Judith and Nick employ a value-based style that favours a private equity approach to investing in public markets.

Downing Strategic Micro-Cap Investment Trust board photo

Insights